Warren Mosler is running for the Senate in Connecticut in the Independent Party primary. Unlike both the Democratic and Republican candidates Warren really understands economics and he’s really brilliant at explaining it to regular folks. Here’s a youtube on why we never have to worry about having enough money to repay the Chinese, or ant other nations that are holding US Dollars. The main point is that Government “borrowing” using debt instruments issued by the Government, is not like you and me borrowing money to fund something, because it carries no solvency risk for the Government.
So, all the panic in deficit terrorist circles whining about how we’re ever going to repay the Chinese and Japanese and how they won’t lend to us anymore is just another fairy story. It’s all another BS distraction to prevent us from asking why the Government isn’t creating full employment for Americans. Here’s Warren:
(Cross-posted at Correntewire.com and Fiscal Sustainability)